Zuma woos Malaysian investment
August 26, 2013, 7:57 am

President Jacob Zuma has said that trade and investments are the crux of ties between Malaysia and South Africa.

Zuma on Monday urged for more Malaysian investment in the country especially in the infrastructure sector.

“South Africa is open for business and is waiting for more Malaysian companies to come and participate,” said the South African President.

Zuma was addressing the South Africa Malaysia Business Forum in Kuala Lumpur on Monday.

Zuma said, the government was on course to spend in excess of R4-trillion on infrastructure over the coming years, focusing on rail, roads, and energy.

Malaysian companies like Proton and KNM International already have a formidable presence in South Africa.

Speaking at a joint press conference with Zuma, Malaysian Prime Minister Datuk Seri Najib Tun Razak said the government needs to create favorable conditions for more investment.

“Malaysian companies stand ready to participate in the infrastructure development in South Africa, depending on the terms and conditions that are offered to them. We also would like to look at the future of our investments in South Africa particularly by Petronas,” he added.

This year marks 20 years since the establishment of diplomatic relations between South Africa and Malaysia.

Trade between Malaysia and South Africa has grown significantly from approximately 13.8 billion rand in 2008 to 19.7 billion rand in 2012.

Although the trade surplus is currently in favor of Malaysia, South African exports to the Asian economy has “risen significantly”, asserted Zuma while urging for a “diversification of the quantum of trade”

The Malaysia South Africa Business Council was launched by former President Nelson Mandela and former Prime Minister Dr Mahathir in1997.

57 founding members, many of them prominent US allies, will sign into creation the China-led Asian Infrastructure Investment Bank on Monday, the first major global financial instrument independent from the Bretton Woods system.

Representatives of the countries will meet in Beijing on Monday to sign an agreement of the bank, the Chinese Foreign Ministry said on Thursday. All the five BRICS countries are also joining the new infrastructure investment bank.

The agreement on the $100 billion AIIB will then have to be ratified by the parliaments of the founding members, Chinese Foreign Ministry spokesman Lu Kang said at a daily press briefing in Beijing.

The AIIB is also the first major multilateral development bank in a generation that provides an avenue for China to strengthen its presence in the world’s fastest-growing region.